Unfortunately that a Headley residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Headley property market.Once your lease gets to 85ish years, you need to start considering a lease extension. If lease term falls under eighty years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Headley will be able to extend under the legislation; however a conveyancer should be able to clarify whether you are eligibility. In some situations you may not qualify. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years left, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Headley can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Headley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Oscar was the the leasehold owner of a studio flat in Headley being marketed with a lease of a few days over 61 years remaining. Oscar on an informal basis approached his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £200 annually. No ground rent would be due on a lease extension were Oscar to invoke his statutory right. Oscar obtained expert legal guidance and secured satisfactory deal informally and readily saleable.
Mrs Jodie Hall moved into a one bedroom apartment in Headley in November 1999. We are asked if we could estimate the price would be to extend the lease by an additional years. Comparative homes in Headley with 100 year plus lease were valued around £295,000. The average ground rent payable was £50 collected quarterly. The lease terminated on 22 November 2101. Considering the 75 years remaining we estimated the premium to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of costs.
Mr N Brooks bought a recently refurbished apartment in Headley in March 1996. We are asked if we could shed any light on how much (approximately) price would likely be to extend the lease by ninety years. Similar homes in Headley with a long lease were in the region of £250,400. The mid-range ground rent payable was £65 invoiced yearly. The lease expired in 2090. Considering the 64 years remaining we approximated the premium to the landlord to extend the lease to be within £19,000 and £22,000 exclusive of expenses.